Automatic Data Processing climbs on Q3 results beat

Automatic Data Processing

01/05/2024 16:19

** Shares of payroll processor Automatic Data Processing
 ADP.O  gain 4% to $26.64 - set to log their best day in over
nine months if gains hold
    ** Co's Q3 revenue of $5.25 bln, beat analysts' estimates of
$5.23 bln - LSEG data 
    ** Q3 adj. EPS of $2.88 above estimates of $2.79 
    ** Results driven by steady demand for co's payroll
software, new bookings and client retention - CEO Maria Black 
    ** Brokerage Evercore ISI sees trends of modest
outperformance in co's employer services segment in the year,
raises PT to $238 from $235
    ** Three brokerages maintain a "buy" or higher rating on ADP
stock, 15 maintain a "hold" while two rate it "sell"; median PT
at $262.5 - LSEG data 
    ** Stock has gained almost 8% so far this year, erasing its
2.5% loss from the previous year

 (Reporting by Purvi Agarwal in Bengaluru)
 ((Purvi.Agarwal@thomsonreuters.com))